Monday, October 4, 2010

Patterson-UTI (Nasdaq:PTEN) Acquires Key Energy (NYSE:KEG) Assets

Patterson-UTI Energy (Nasdaq:PTEN) has acquired two assets from Key Energy Services, Inc. (NYSE:KEG) via two subsidiaries.

Universal Pressure Pumping, Inc. and Universal Wireline acquired wireline and pressure pumping assets from Key Energy for about $238 million in cash. They were subsidiaries of Key Energy.

Patterson-UTI's Chairman Mark S. Siegel said about the acquisition, "We are pleased to complete this acquisition that significantly expands one of our core businesses. This acquisition was funded with a combination of cash on hand and a draw under our $400 million revolving line of credit."

Key acquired assets from OFS Energy Services, including subsidiaries of the company and other assets. That cost Key Energy $15.8 million shares in its stock and $75.8 million cash, "subject to certain post-closing adjustments."

A six-month lockup period on new Key stock issued by Key Energy began on October 1.

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